The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil rose over $2 on signs of increased refinery usage heading into the summer driving season and on hopes that a relaxed fed regarding interest rates will help keep energy demand strong.

The U.S. dollar index rebounded from yesterday’s late session losses and treasuries backed off from yesterday’s late session gains as traders reevaluated their reaction to the fed’s statement and pushed interest rates back to about where they were before the fed’s statement.

The Dow, Nasdaq, and S&P remained near unchanged as traders waited for new data to confirm or deny their hopes raised yesterday of a possible fed interest rate cut.

Among the big names making news in the market today were Countrywide, News Corp. and NBC, KB Home, Barnes & Noble, CVS and Caremark Rx, ConAgra, General Mills, Wal-Mart, and Borders.

The Commentary:

“The Gold Cartel has got to be desperately scrounging around for physical gold to meet a surging demand for bullion. EVERYONE has to know (if they can count to ten) what is going on here … and will have to create even a greater surge to accumulate gold. Prior to this stunning Fed capitulation on inflation, the bad guys greatly reduced their gold short positions in order to be ready to fight their next battle as gold rises. The gold open interest fell 7268 contracts yesterday to 359,726. This means the OI has dropped from top to bottom about as much as it did in the prior correction when the high in the gold open interest was 373,000. The good news is that gold has rallied $20 off the bottom while they covered.

Yesterday it was reported the ECB group suddenly dumped 16 tonnes of gold into the market the prior week to keep gold from taking out the $650/$660 level. This amount was 5 to 6 times what they had been selling this year. Clearly, we now know why. Had they not sold that much, gold would have been back to the $680 level BEFORE the Fed cave in.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com

“April Gold finished up 4.2 at 664.2, 3.1 off the high and 1.8 up from the low.

May Silver closed up 0.16 at 13.48. This was 0.06 up from the low and 0.09 off the high.

The gold market was mostly positive throughout the session Thursday despite some suggestions that the market was a bit overbought from a short term perspective. A surge higher in energy prices certainly fanned inflation expectations punctuated by an outlook for higher gasoline prices this summer. However, a downward thrust in Treasuries and a slight break down of the tight correlation between the gold market and the stock market might have been seen as a positive by the trade. In the end, the US economic data released during the session was countervailing but the gold market didn't seem to fall back directly in the aftermath of the soft leading Indicators report and that is also a sign that gold is beginning to look to other forces than the economy for direction.

With the May silver contract managing another new high for the move on Thursday and doing so without the direct support of the US equity market it would seem to suggest that the silver bulls are broadening their case. In fact, the silver market also managed to fully discount the softer than expected US Leading Indicators report but that wasn't altogether surprising when one considers the sharp upward gains posted in both the copper and platinum markets. Like the gold market some players suggested that the strong gains in the oil market provided the silver market with a lift and that is also a change in the recent pattern.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Back it with gold and everyone will say 'ruble' quite easily

Bill King: Even Cramer's small hedge fund could manipulate market

India may be indifferent to gold ETFs without delivery of metal

IMF is changing rules to prevent double-counting of leased gold

The Statistics:

As of close of business: 3/21/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: No change in Total Tonnes from yesterday’s data.

COMEX Gold Trust (IAU)

Note: Change in Total Tonnes from yesterday’s data:  0.47 tonnes were added to the trust.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Great Basin’s (GBN) drill results and filing to sell up to $90 million in units, Newmont’s (NEM) output at Yanacocha, U.S. Gold’s (UXG) reminder of their offer expiration date tomorrow, Queenstake’s (QEE) combination agreement with YGC Resources (YGC.TO), U.S. Silver’s (USA.V) exploration update, Minco Silver’s (MSV.TO) assay results, and Esperanza’s (EPZ.V) drill results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

All of today's gold and silver stock news:

Sea Green Capital Corp. Announces Closing of First Tranche of Financing for $510,000, and, Acquisition of Additional Claims While Drilling Continues - More
- March 22, 2007 | Item | E-mail

Farallon Places Orders for US$10 Million of Major Process Equipment for Campo Morado - More
- March 22, 2007 | Item | E-mail

Marathon Announces Financial Results for 2006 - More
- March 22, 2007 | Item | E-mail

Imperial Reports 2006 Financial Results - More
- March 22, 2007 | Item | E-mail

Largo Announces Addition to Management Team and Advisory Board - More
- March 22, 2007 | Item | E-mail

San Gold High Grade Development Update - More
- March 22, 2007 | Item | E-mail

Jaguar Mining Closes Previously Announced C$86.25 Million Private Placement of Units - More
- March 22, 2007 | Item | E-mail

Powertech Awards Drilling Contracts - More
- March 22, 2007 | Item | E-mail

Grenville Gold Exercises Option on Purchase of Subsidiary Inversiones Mineras Alexander S.A.C. - More
- March 22, 2007 | Item | E-mail

Uranerz Welcomes New General Manager of Production - More
- March 22, 2007 |